MGM Resorts International will acquire the remaining share of The Borgata in Atlantic City from Boyd Gaming.
The two companies owned the casino on a 50-50 basis. The Borgata is considered to be the most profitable casino in an Atlantic City market that is beginning to show signs of stabilizing after the closing of a number of four casinos in recent years.
The purchase comes as the Las Vegas company builds a larger presence on the East Coast. A massive Las Vegas-style MGM property is being built at National Harbor in Maryland, a short distance away from Washington, D.C.
The Borgata was a departure for Boyd, which has specialized in casinos off the Las Vegas strip that often frequented by local residents. It also has several other casinos outside of Las Vegas.
The National Harbor casino is more bad news for Delaware’s two downstate casinos, which had once counted on the D.C. area as a major market.
MGM Resorts will pay approximately $600 million for Boyd Gaming’s 50 percent interest, subject to customary working capital adjustments, after consideration of Borgata’s outstanding debt of approximately $600 million, which MGM Resorts will assume and refinance.
For the last twelve months ended March 31, Borgata reported $812 million in net revenues and $212 million in earnings for before taxes, interest and depreciation.
MGM will bring its M life Rewards to the Borgata, according to a release.
Subsequent to the purchase of Boyd Gaming’s 50 percent stake in Borgata, MGM Resorts and MGP (a real estate unit) have agreed that MGM Resorts will sell all of Borgata’s real property to MGP for total consideration of approximately $1.175 billion.
MGM Resorts International’s casino/hotels include (Bellagio, MGM Grand, Mandalay Bay and The Mirage in Las Vegas.
The Company is in the process of developing MGM National Harbor in Maryland and MGM Springfield in Massachusetts
The Company also owns 51 percent of MGM China Holdings Limited (HK: 2282), which owns the MGM Macau resort and casino and is developing a gaming resort in Cotai, and 50 percent of CityCenter in Las Vegas, which features ARIA Resort & Casino.
